LONDON — European markets climbed to record highs on Friday as traders shrugged off a sharp rise in U.S. inflation, with many strategists believing it to be transitory.

The pan-European Stoxx 600 added 0.7% by the close, notching its sixth consecutive session of gains. All sectors finished in positive territory, led by basic resources which rose 1.9%. For the week, the Stoxx 600 benchmark rose by 1.1%

On Wall Street, U.S. stocks traded higher with the S&P 500 adding to its new record.

The U.S. Labor Department reported a 5% annual increase in its headline consumer price index on Thursday, its fastest rise since 2008. Core inflation, which excludes food and energy prices, rose 3.8% to notch its sharpest increase in nearly three decades.

Investors have been closely watching inflation figures to gauge whether the U.S. Federal Reserve will begin tapering down its unprecedented monetary stimulus program. However, strategists have suggested…

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